Individuals who already own property or land can keep it as collateral to get a loan against property. A mortgage loan helps in meeting various financial requirements and has a quick disbursal process. However, to streamline the process further, interested applicants must know what the list of documents needed for land mortgage loans include.
What documents are needed to take a loan against property?
Here is the list of documents which applicants need to submit for the approval of their loan applications:
- Salaried employees need to submit their latest salary slips
- Aadhaar and PAN cards
- Address proof
- Copy of documents of the property being kept as the collateral
- Previous 3 months’ bank account statement
- Only salaried employees need to submit their IT Returns
In addition to these, there might be a few other documents which the lending institution will ask from the borrower at the time of loan application.
A loan against property is not completed by just submitting the proper documents. Along with it, individuals must also know things like qualifying eligibility for mortgage loan, searching for best lender and negotiating offers and then the application process.
Steps to apply for a loan against property
Here are the steps that borrowers need to follow to apply for land mortgage loans:
Step 1: The first thing that individuals need to do is fill out the application form. The forms are available both online and offline. Borrowers can either download the form from the lending institutions’ website or visit the lender’s nearest branch.
Step 2: After filling out the application form with the necessary details, borrowers must submit it. Then, a representative would contact them to verify the details and check the borrower’s credit score.
Step 3: After submission, borrowers must wait until the lending institution verifies the documents.
Step 4: After successfully completing the validation process, the lending institution will make an offer to the borrower against the pledged property.
Step 5: Then, applicants have to accept the offer, and the systematic evaluation of the property will start. This would involve evaluation of the property through on-ground and legal terms.
Step 6: Once all these steps are complete, the lender will disburse the funds into the applicant’s account.
Few tips to keep in mind while applying for LAP
Here are a few tips to keep in mind while making an application for a loan against property:
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Property should be undisputed
Applicants must verify that the property they offer as collateral is free from any claims before submitting an application for a loan. Rejection of a loan application may arise due to unclear property documents and ownership disputes between property owners. Disputes commonly involve the area of the property in question, so individuals can use calculators for area of land measurement to make their task simple.
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Loan amounts must be reasonable
No one, besides the borrowers themselves, is more knowledgeable about handling their own funds. As a result, people should always apply for a loan that they are confident of repaying. All borrowers are, nevertheless, expected to make on-time EMI payments.
To avoid defaulting on payments, borrowers can use property mortgage loan emi calculators, which are available online.
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Picking the appropriate tenor is essential
When deciding on the duration, it’s crucial to take in mind both the ability to pay back the loan and the interest rate. To determine how long the loan tenor needs to be for a given interest rate and loan amount, one can utilise mortgage calculators.
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Compare loan offers across various lenders
Before finalising one lender, borrowers must ensure to compare across various lenders. They should check the interest rates, repayment tenor, offers, services and reviews of the lenders.
Furthermore, several financial institutions provide pre-approved offers on several secured and unsecured products to customers. These simplify and accelerate the loan procedure, and borrowers can avail of additional discounts. To check their pre-approved offers, individuals have to enter their names and contact details on the ‘pre-approved’ section present on the websites of the lenders.
Conclusion
To conclude, these were the list of basic documents that one would need to apply for a land mortgage loan. Moreover, with the advancement of digitalisation, individuals can get more information online. Borrowers, however, can also choose to visit the lender’s offices and talk to the representatives for an exact quote of the EMIs and the offers.